GR Hotels Corporation (GR, Corporate or The Company) is a privately-owned throne that ope range two large mid-scale hotels, one in Montreal and one in Toronto. GR vision is to be the hotels of choice for travelers in Canadian cities and the direction is to provide clean, comfortable rooms, good quality services to calling and pleasure travelers in Toronto and Montreal at competitive prices.
The new incarnate goals are to change the occupancy rates and attract more(prenominal) business travelers. The shareholders request any proposed investment would generate a minimum after-tax return of 15% and the buzzword request the attach tos operating profit must be at least 11% of revenues each year. In order to lapse the goals, three alternatives are stated in the report. After slender analyzed on each alternatives quantitatively and qualitatively, the recommendation and execution of instrument plans are presented to improve the companys strategic and in operation(p) issues and ensure reach the new corporate goals.
Introduction
As industriousness outlook, 6% climb for worldwide tourist, 3-5% growth for Canadian tourism and higher increased travelers for upscale than mid-scale hotels. GR Hotel is going to use this fortune and implement the following improvement to improve the occupancy rates and attract more business travelers.
Major Issue: improve the occupancy rates and attract more business travelers
substitute 1 Upgrading one or both of the hotels
Pros:
Gets the funding since the bank willing to refinance the existed mortgage
Creates 7.6 M NPV for Montreal Hotel and 8.1 M for Toronto Hotel (Video Appendix). It follows the carte du jour direction, meets Shareholders Return on Investment greater than 15% and the swan covenant operating profit % of revenue greater than 11%.
Fits the demand growing at up-scale hotel and business travelers stay at up-scale hotel with the good locations GR have
Eliminates the risks on no room service, dry cleansing and internet...If you want to get a full essay, order it on our website: Orderessay
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